From my point of view, the list of emotional biais given in Reading 11 ( Concentrated asset positions) does not match the one in reading 6 (Behavioral biais of individual)
Reading 6:
1)Loss Aversion
2)Overconfidence
3)Self Control
4)Statut Quo
5)Endowment
6)Regret Aversion
Reading 11 (page 331)
1) Overconfidence
2) Statut quo biais
3) Naive extrapolation of past returns
4)Endowment effect
5)Loyalty effect
How do you guys match Naive extrapolation of past returns and Loyalty effect to the biaises described in the reading 6?
Also, can someone explain why naive extrapolation of past returns is an emotional biais and not a cognitive biais?
On the same note, in Reading 15 (Capital market expectations), there is a list of “psychological traps” in forecasting , including “statut quo trap” . It states that this trap “may be overcome with rational analysis”. This imply that this is a cognitive error and not an emotional biais no?
I have the (annoying) feeling that every chapter has its independant intrepretation of behavioral biais.